CHAPTER 9. DEBT SERVICE FUND
IC 20-40-9
Chapter 9. Debt Service Fund
IC 20-40-9-1
"Debt service"
Sec. 1. As used in this chapter, "debt service" includes bonds and
coupons, civil bond obligations, lease rental contracts, and interest
cost on emergency and temporary loans.
As added by P.L.2-2006, SEC.163.
IC 20-40-9-2
"Fund"
Sec. 2. As used in this chapter, "fund" refers to a debt service fund
established under section 4 of this chapter.
As added by P.L.2-2006, SEC.163.
IC 20-40-9-3
"Levy"
Sec. 3. As used in this chapter, "levy" refers to a debt service levy
under IC 20-46-7 for the fund.
As added by P.L.2-2006, SEC.163.
IC 20-40-9-4
Establishment of fund
Sec. 4. The governing body of each school corporation shall
establish a debt service fund.
As added by P.L.2-2006, SEC.163.
IC 20-40-9-5
Uses; required use of fund
Sec. 5. Except as otherwise provided by law, all expenditures for
debt service must be paid from the fund.
As added by P.L.2-2006, SEC.163.
IC 20-40-9-6
Uses; payment of debt and lease expenses
Sec. 6. Money in the fund may be used for payment of the
following:
(1) All debt and other obligations arising out of funds borrowed
or advanced for school buildings when purchased from the
proceeds of a bond issue for capital construction.
(2) A lease to provide capital construction.
(3) Interest on emergency and temporary loans.
(4) All debt and other obligations arising out of funds borrowed
or advanced for the purchase or lease of school buses when
purchased or leased from the proceeds of a bond issue, or from
money obtained from a loan made under IC 20-27-4-5, for that
purpose.
(5) All debt and other obligations arising out of funds borrowed
to pay judgments against the school corporation.
(6) All debt and other obligations arising out of funds borrowed
to purchase equipment.
As added by P.L.2-2006, SEC.163.
IC 20-40-9-7
Uses; post of textbooks
Sec. 7. (a) Money in the fund may be used for payment of all
unreimbursed costs of textbooks for the school corporation's students
who were eligible for free or reduced lunches in the previous school
year.
(b) The governing body may transfer the amount levied to cover
unreimbursed costs of textbooks under this section to the textbook
rental fund or extracurricular account.
As added by P.L.2-2006, SEC.163.
IC 20-40-9-8
Uses; lease rentals
Sec. 8. (a) Lease rental obligations on account of leases entered
into under IC 21-5-11 (before its repeal), IC 20-47-2, IC 21-5-12
(before its repeal), or IC 20-47-3 may be paid by a school corporation
from the fund.
(b) Payments described in subsection (a) must be provided for in
the annual budget for the fund from which the payment is made.
(c) This section does not prohibit the payment of lease rental
obligations from the general fund.
As added by P.L.2-2006, SEC.163.
IC 20-40-9-9
Uses; community school corporations
Sec. 9. Money in the fund may be used to pay lease rental
obligations, school bonds and coupons, and civil bond obligations
assumed by school corporations reorganized under IC 20-23-4.
As added by P.L.2-2006, SEC.163.
IC 20-40-9-10
Limitation on payment of principal; emergency and temporary
loans
Sec. 10. (a) Except as otherwise provided by law, a school
corporation may not pay from the fund the principal of emergency
and temporary loans obtained for the benefit of any other fund.
(b) Except as provided in IC 20-48-1-7 and IC 20-48-1-9, payment
of interest on emergency and temporary loans must be received in
and disbursed from the fund.
As added by P.L.2-2006, SEC.163.
IC 20-40-9-11
Uses; principal and interest; state advance
Sec. 11. An amount equal to deductions made or to be made in the
current year for the payment of principal and interest on an
advancement from any state fund (including the common school fund
and the veterans memorial school construction fund) may be
included in debt service and appropriated and paid to the general
fund.
As added by P.L.2-2006, SEC.163.